Earnings Release FY10 Q2

Key Performance Indicators

Total bookings growth (y/y)Indicator of total business growth during the period - calculated as the sum of revenue growth, plus change in balance of unearned revenue balance, and plus change in the contracted but not billed balance.

Multi-year licensing agreementsRepresents sales to customers of software licenses plus software assurance which provides them with software upgrade rights and other benefits over the life of the agreement.

30%

30%

40%

50%

**

35%

30%

License only Represents sales to customers of software licenses.

25%

25%

25%

20%

**

25%

25%

Rest of businessRepresents sales from all other sources including Xbox 360, online advertising etc.

OEM Premium mixA driver of Windows average selling prices (ASPs). Represents the percentage of Windows premium SKU sales as a percentage of total windows license sales.

71%

65%

62%

59%

64%

63%

71%

Business premium mix

36%

32%

32%

29%

32%

28%

27%

Consumer premium mixSubset of the overall premium mix that represents consumer premium SKU vs. business premium SKU sales as drivers for ASPs.Note: The Company receives over five times the pricing uplift over the basic offering from a sale of a business premium sku than we receive from the sale of a consumer premium sku.

LTD Xbox 360 unit salesLife to date (LTD) sales is an estimate of the installed base, which is one driver of profitable future software sale.

22.5

28.5

30.2

31.5

31.5

33.6

38.8

Total Xbox Live membersAn indicator of Xbox live services usage which drives additional revenue opportunities for the Xbox business.

>14

>17

**

>20

>20

>20

23

LTD Xbox 360 US software attach (source: NPD***)Represents the average number of software titles sold per Xbox360 console which helps drive the profitability of the business (LTD = Life to Date).

8.1

8.1

8.3

8.6

8.6

8.7

8.8

LTD Xbox 360 US accessory attach (source: NPD***)Represents the average number of hardware accessories sold per Xbox360 console which helps drive the profitability of the business (LTD = Life to Date).

3.9

3.7

3.9

4

4.0

4.1

4.0

* = FY10 not recast for methodology change

** = Not disclosed

*** = NPD Group, a marketing research firm

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is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party
information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or
for historical information the date or period expressly indicated in or with such information. We undertake no duty to update
the information. Forward-looking statements are subject to risks and uncertainties described in our
Forms 10-Q and 10-K.